This study investigates the impact of leadership and innovative behavior on organizational performance in textile sector of Pakistan. The online survey method is adopted for data collection via questionnaire from different managerial level of textile organizations. Statistical analysis method is used for analysis of collected survey data from about 200 respondents via SPSS software. It was analyzed from the data that both transactional and transformational leadership style has a positive impact on organizational performance but transactional leadership was found to be more positive impact on organizational performance in textile sector as compared to transformational leadership. Similarly, innovative behavior also found to be positive towards organizational performance but of little impact in case of textile sector of Pakistan.